Watches of Switzerland Rejects Takeover Offer
Watches of Switzerland Group rejected a takeover proposal, confirming its continued independence while reporting a strong fiscal year. Revenue rose 11% to £1.8 billion and profit before tax increased 76% to £133 million, driven by robust sales of luxury watches, expanding pre‑owned offerings and continued investment in showrooms and digital channels. The company highlighted a 55% share‑price gain this year and outlined a focus on high‑return opportunities, including further showroom expansion, e‑commerce growth and strategic acquisitions, particularly in the United States. Looking ahead to FY27, the firm plans to build on its performance by enhancing the client experience through the Xenia programme, maintaining cost discipline and capitalising on growth in the US and UK markets. Total capital expenditure is expected to stay at £60‑£70 million annually, while pre‑owned watches now represent over 8% of the business, reflecting a shift toward diversified revenue streams and sustainable, profitable growth.
Buying Time Analysis: The story highlights Watches of Switzerland’s decision to reject a takeover, underscoring its strong share performance, strategic growth initiatives, and the broader implications for the luxury watch retail sector’s valuation and investor confidence.
